Saskatchewan farmers are feeling the weight of a increased global commercial war after China announced retaliation rates on Canadian canola oil, peas and oil cakes.
The measure follows the decision of the federal government on October 1 to impose 100 percent tariffs on Chinese electric vehicles and a 25 percent tax on their aluminum and steel products.
Bill Prybylski, president of the Saskatchewan Agriculture Producers Association, says the producers saw this arrive.
“We are not surprised,” said Prybylski. “Since the Federal Government announced tariffs on Chinese electric vehicles, it was expected that the Chinese government would retaliate in some way.”
Sylvain Charlebois, director of the Agri-Comida Analysis Laboratory of the University of Dalhousie, says that China’s decision is part of a strategic geopolitical movement.
“China has a history of use of tariffs as a political tool,” Charlebois said. “It’s not just about trade, it’s about exerting pressure on Canada.”
Prybylski says that canola is a cornerstone of Saskatchewan’s economy, with approximately 20 million acres planted annually.
Lee Moats, a Saskatchewan farmer and former member of the Saskatchewan Board Pulse Growers, says that tariffs will harm the farmers in western Canada.
“Canola and peas are two very important markets for farmers in western Canada,” said Moats. “In a world of uncertainty, this only adds a new and disturbing level of uncertainty for us.”
Prybylski says that China and the United States are the largest export markets in the province, which means that any interruption in trade has serious financial consequences for producers.
“Every time there is a rate like this, prices will affect,” Prybylski explained.
“When there was talk of tariffs that went to the United States, our canola prices gave a strong fall. Since then they recovered a little, but now they are in decline again. This will only exacerbate the situation.”
The graves agree.
“If we are excluded from these markets, that would have a very significant and perhaps catastrophic impact on our Canola industry,” he said.
Moys says that farmers like him have no choice but to advance in this new market reality.
“We have no way of affecting what the governments of the United States or China do. We just have to adapt. This will be a proof of whether we have resilience and financial planning to tolerate a shock to our market.”
